IEA Flags Ethiopia’s Electricity Access and Financing Gaps Despite Generation Expansion

Key Takeaways

• 85 million people remain without electricity access under the IEA’s basic-service definition.
• 35% was Ethiopia’s approximate electricity-access rate in 2024, according to the agency’s review.
• October 27 brought presentation of the review during Ethiopian Water and Energy Week.
• 75% access by 2030 and universal access by 2035 are national targets.
• 7% had clean-cooking access in 2024; 120 million people relied on traditional methods.
• High financing costs, foreign-exchange constraints and infrastructure gaps hinder energy investment.
• The IEA recommends grid modernisation, diversified supply and expanded concessional and blended finance.

Market Impact

• The review links generation expansion to the need for reliable distribution and affordable connections.
• Consumer financing and stronger supply chains are also needed for clean-cooking adoption. Investment must extend beyond generation projects to end-user services.

Key Numbers

• 85 million — people without access — IEA estimate.
• 35% — 2024 electricity access — baseline.
• 7% — 2024 clean-cooking access — adoption gap.

Business Signal

• Delivering usable energy requires financing and network improvements alongside additional generation.